Family Bank has been awarded and recognized as Bank of the year for high-impact agricultural lending to Small, Medium Enterprises (SMEs) by Aceli Africa.
The Bank was awarded during the Aceli Africa Convention which sought to discuss the implementation of financial incentives and technical assistance to grow the Agri-SME sector. The convention brought together stakeholders from East Africa, Southern Africa, the United States, Europe, and Mexico including lenders, donors, SMEs, Developmental Financial Institutions (DFIs), social impact lenders, and consultants among others.
“SMEs more so those in the agricultural sector are very crucial to the achievement of meaningful sustainable development. At Family Bank, we have been deliberate in widening our capital base and scaling up lending to this sector, particularly through partnerships,” said Family Bank Chief Retail Officer Phyllis Kimani.
Family Bank in partnership with Aceli Africa has been lending to SMEs within the agricultural sector through an incentive program valued at approximately KES 4.8 billion (USD 40m) and KES 1.2 billion (USD 10m) in financial and technical assistance respectively.
“This award is therefore a testament to the Bank’s commitment to offering support to the agricultural sector while addressing the cross-cutting issues of gender inclusiveness and sustainability,” she concluded.
The Bank through numerous partnerships has been enabling MSMEs in agriculture to access financing. Family Bank acquired USD 10 million, approximately KES 1.1 billion from Eco. Business Fund to increase access to finance for sustainable agricultural producers, particularly in the tea sector. In 2021, through a partnership with Performeter Agribusiness, the Bank set aside KES 1 billion to finance fodder production to boost milk yield for dairy farmers and improve their living standards.
The Bank also committed KES 500 million and a further KES 6 billion in partnership with Palladium, through an initiative dubbed ‘Pay for Performance’ under USAID’s Feed the Future Program, to help finance agri-businesses in dairy, horticulture, livestock, and energy for agriculture value chains to boost agriculture-led growth, resilience, and nutrition across in 17 counties.